"Sure enough, home prices and rents closely tracked each other until around the year 2000. Then we get what literally looks like a bubble. And now the light blue line is suspiciously ticking upward again."
Read: How to Tell If We’re Really Entering Another Housing Bubble
I remember in 2006, my dad said to me, “The housing market really looks like a bubble,” and showed me a graph similar to this one (although obviously it ended in 2006). And I was like, “No way! I’m gonna buy a house!”
And my dad was like, “I’m pretty sure renting would be cheaper.”
And I was like, “I’m gonna buy a house with a LAWN that I CAN MOW MYSELF.”
And my dad was like, “You know, mowing the lawn actually kind of sucks, and also turf grass is an invasive plant species that—”
And I was like, “SUCK IT DAD I’M GETTING A HOUSE.
Meanwhile, I bought a condo in 2009. As a first time homebuyer, I got my 10% down payment completely back because of the tax incentive in place at the time. Essentially, I paid $8,000 to start paying for my $80,000 condo, then the government gave me that $8,000 back. I proceeded to buy a used car from Craigslist with that money. I don’t know how I got this lucky.